Lightning Network FAQs
- What is the Lightning Network?
Lightning Network is the second layer of the payment technology on the blockchain platform. It enables swift Bitcoin transactions with little transaction fees. With the Lightning network, micro-transactions of Bitcoin are seamlessly done in a few seconds.
It allows users to send to and receive BTC from any part of the world with the speed of light. Lightning aims to reduce the number of transactions that go through the blockchain – and free up congestion as well as lower transaction fees.
How Does the Lightning Network work?
As a second layer on top of the blockchain technology, two or more parties can conduct off-chain transactions where funds are stored in “payment channels” and the users can exchange services successfully.
After the transaction is completed, the end state of the “payment channel” balance is then hosted on the Bitcoin network which means your funds are securely settled on the Blockchain.
How fast are transactions on Lightning Network?
Transactions done on the Lightning network are processed in milliseconds or under 1 minute. In comparison, the Bitcoin blockchain takes an average of 10 minutes to settle transactions.
Which sites or apps can I use Lightning Network?
Our top 5 platforms to use the Lightning Network are:
- Bitnob: A Bitcoin savings platform that allows users to save in BTC for as low as $1. Users can also send and receive Bitcoin using the blockchain and Lightning network. In addition, users can take loans with their Bitcoin as collateral.
- Bitrefill: You can purchase mobile refills, gift cards, and pay mobile bills in more than 170 countries. Payment can be facilitated in Bitcoin which is where the Lightning Network comes in handy for quick purchases.
- BottlePay: Bottlepay allows you to send Bitcoin, receive Bitcoin and even exchange it for Dollars and Euro. Users can send money across the UK and Europe with the Lightning Network.
- Tippin: Tippin has one of the most interesting use cases for the Lightning Network. Users simply download the Tippin browser extension and can immediately get Bitcoin tips and payments via Lightning Network on Twitter.
- Strike: The platform's message of "A connected world" is evident in its Lightning network integration. You can send, receive Bitcoin on the Network instantly with the lowest fees. They even throw in a Strike card for good measure.
- What are Lightning Network Wallets?
Lightning Network Wallets are primarily Bitcoin wallets that allow you to create a lightning network payment channel between you and another individual. LN wallets are not the easiest to use if you are a newbie so it is recommended that you use the Lightning Network on apps like Bitnob that make it super easy to send and receive Bitcoin.
- Do I need a personal Lightning Network Wallet?
If you are a newbie to Bitcoin and the Lightning network, custodial wallets allow you to use all the functionalities afforded by the Lightning Network without worrying about the technical parts.
You can create payment channels with custodial LN Wallets using platforms like Bitnob, Muun, and Strike.
- What are the best Lightning Network Wallets?
Our top 5 Lightning Network Wallets are:
- Wallet of Satoshi: This is a mobile custodial Wallet that does not require signups. Simply download the app and you can start sending and receiving satoshis - the unit of Bitcoin.
- Breez: Allows you to receive up to 1 million satoshis. It also encrypts your payment channel to your Google Drive which comes in handy if you delete the app or lose your Wallet.
- BLW: Available on iOS, Mac, and Android, BlueWallet is a non-custodial wallet that securely signs Bitcoin transactions, and can be used as an alternative to credit cards.
- Muun: This LN Wallet is a self-custodial wallet available on iOS and Android. Its scan feature comes in handy alongside the Mempool-based estimator that suggests the next fee rate. It has a multiple signature wallet, an exportable emergency kit, and is heavily focused on security.
- Eclair: An open-source Lightning Network Wallet that is supported by Bitcoin.org, Eclair Mobile's best feature is that it computes payment channels directly on your device rather than through third-party routes for additional privacy.
Where Can I Buy Things With Lightning Network?
Below is a list of marketplace where you can purchase products and services using the Lightning Network - culled from BlueWallet.
- Bitrefill: Vouchers, call credits, and bills payment.
- Silent.link: Data plans.
- Sat2.io: Satoshis savings
- Stekking: Earn Bitcoin while shopping
To use the Lightning Network and send Satoshis - the unit of Bitcoin - you need to own Bitcoin. Bitnob allows you to own Bitcoin for as low as $1, #500 naira or 5.98gh.